Private Money Loans in Florida
Some real estate opportunities do not wait for a traditional underwriting timeline. Private money loans focus on the property and the plan, and can close quickly for investors. We help you compare lenders, read the terms, and make sure the exit is solid before you borrow.
Asset-focused lending for time-sensitive deals
Private money loans, often called hard money loans, come from private lenders, investor groups, or funds rather than from banks and agency programs. They are typically short-term, business-purpose loans secured by real estate, and the lender places heavy weight on the property’s value, your equity, and your plan to repay.
That focus can mean faster closings and more flexibility for unusual properties, credit situations, or timelines. In exchange, rates, points, and fees are usually higher, and terms are short. Private money works best as a bridge to a defined exit: a sale, a refinance into long-term financing, or the completion of a project.
Where private money fits
Fix and flip
Purchase and renovation funding for a property you plan to improve and sell.
Bridge financing
Short-term funding to close quickly, then refinance or sell on a planned timeline.
Distressed or unusual properties
Properties that do not meet traditional condition or eligibility standards.
Construction and land
Ground-up projects or land purchases that banks may decline or move slowly on.
Speed and flexibility, at a price
Speed
Private lenders can often close faster than traditional mortgages, which matters in competitive or time-sensitive deals.
Property-focused
Value, equity, and the plan carry significant weight, alongside your credit and experience.
Flexible structures
Terms can be tailored to the deal, such as interest-only payments or renovation holdbacks.
Leverage your equity
Borrow against equity in investment property to fund the next opportunity.
Higher cost
Expect higher rates, points, and fees than long-term financing. The deal has to support them.
A defined exit
Short terms mean you need a realistic plan to sell or refinance before the loan matures.
What a private lender wants to see
Every private lender sets its own criteria. These are the common review areas.
- Property and value
- Appraisal or valuation, condition, and, for projects, the after-repair value.
- Equity and down payment
- Your cash in the deal or equity in the property, which drives leverage.
- Exit strategy
- A clear, documented plan to repay through a sale or refinance.
- Experience and credit
- Your investment track record and credit history, which affect terms.
- Entity and guarantees
- Many loans are made to an LLC or corporation, with personal guarantees.
- Loan terms
- Rate, points, fees, term, extension options, prepayment terms, and default provisions.
What to gather
A complete package helps a private lender respond quickly.
Property address, purchase contract, or current title information
Your plan for the property and a written exit strategy
Renovation budget and timeline, if applicable
Entity documents for your LLC or corporation
Bank statements showing your down payment, costs, and reserves
A summary of your real estate experience
From opportunity to payoff
Deal review
We review the property, the timeline, the numbers, and your exit plan.
Lender match
Compare private lenders on leverage, speed, rate, points, fees, and term.
Term sheet
Review the written terms, including extension, prepayment, and default provisions.
Valuation and documents
The lender reviews the property, title, insurance, and entity documents.
Closing
Funds are disbursed at closing, with any renovation holdback released in draws.
Exit
Repay through sale or refinance into long-term financing, such as a DSCR loan.
Private money vs. long-term investment financing
Private money is a bridge. Long-term financing is the destination for many investors.
| Feature | Private money loan | DSCR or conventional investment loan |
|---|---|---|
| Lender | Private lenders, groups, or funds | Banks, mortgage lenders, and investors |
| Term | Short term | Long term, often 30 years |
| Speed | Often faster | Standard underwriting timeline |
| Underwriting focus | Property value, equity, and exit plan | Rental income or borrower income |
| Cost | Higher rates, points, and fees | Lower long-term pricing |
| Best fit | Acquisition, renovation, or bridge | Stabilized rental properties |
Private Money Loans FAQs
What is the difference between private money and hard money?
The terms are often used interchangeably. Both describe short-term loans from private sources that focus heavily on the property and the borrower’s plan. Some people use hard money to mean more institutional private lenders.
Can I use a private money loan to buy my own home?
Private money is generally used for business-purpose and investment transactions. For a home you will live in, traditional mortgage programs usually offer better pricing and consumer protections.
How fast can a private money loan close?
It depends on the lender, the property, title, and how complete your documents are. Private lenders are often faster than traditional mortgages, but you should still allow time for valuation and title work.
Is there a limit on the interest a private lender can charge in Florida?
Florida’s usury statute generally caps interest at 18% per year simple interest on loans up to $500,000 and 25% on larger loans. How fees are treated can matter, so have an attorney review your documents.
What happens if my project takes longer than the loan term?
Many loans offer extensions for a fee, and some charge higher default interest after maturity. Read these terms before you sign and build extra time into your plan.
How do I get out of a private money loan?
Most investors sell the property or refinance into longer-term financing, such as a DSCR loan, once the property is renovated or stabilized.
Compare private money options for your deal
Share the property, timeline, numbers, and exit plan. We will help you compare lenders and read the terms before you commit.
Important disclosures
Programs, rates and requirements are subject to change and borrower qualification. This is not a commitment to lend.